Alcatel-Lucent and Datang Mobile selected by China Mobile for the second phase of its TD-SCDMA mobile network trial

Paris - Alcatel-Lucent (Euronext and NYSE: ALU), through its Chinese flagship company, and Datang Mobile –today announced that their consortium has won the largest share in China Mobile’s tender for the second phase of its TD-SCDMA mobile network trial. The industry-leading TD-SCDMA offering from the two companies will help China Mobile address the growing demand in China for broadband Internet access services on mobile devices.

The deployment of China Mobile’s phase II TD-SCDMA network will cover 28 cities across the nation. Under the agreement Alcatel-Lucent and Datang Mobile will provide their industry-leading TD-SCDMA solution for 11 of the 28 cities covered by China Mobile’s phase II network, including Nanjing, Hangzhou, Ningbo, Changchun, Hefei, Guiyang, Kunming, Xi’an, Lanzhou, Yinchuan and Urumqi.

Upon the project’s completion in June of 2009, the subscribers in these 11 cities will be able to enjoy a full range of multimedia services including ring back tones, multimedia messaging service and – with the eventual future introduction of 3G capabilities – more advanced services such as video telephony.

“China Mobile is making substantial investments in the country’s next generation mobile communications infrastructure to ensure that China’s citizens have access to some of the most sophisticated and useful mobile services,” said Olivia Qiu, President of Alcatel Shanghai Bell. “Alcatel-Lucent’s and Datang Mobile’s participating in this phase II trial offers a great opportunity for our companies to help China Mobile meet its goals. It’s a strong proof point of our commitment to partner with our customers in their transition to next generation mobile networks.”

“Datang Mobile is committed to continuously delivering new innovations to strengthen TD-SCDMA technology, and is leveraging the experience accumulated in the first phase of the trial to provide China Mobile with a superior network that can support their business objectives,” said Xie Yongbin, President of Datang Mobile. “Our long-term strategic partnership with Alcatel Shanghai Bell has been a valuable asset as we work to accelerate the industrialization of TD-SCDMA technology”.

The phase II expansion builds on the successful collaboration with China Mobile on the initial deployment of its trial network. In April 2007, Alcatel Shanghai Bell and Datang Mobile jointly secured China Mobile’s phase I TD-SCDMA trial network tender. The companies completed construction of the TD-SCDMA networks in Guangzhou and Shanghai at the end of 2007 and put base stations into operation ahead of schedule. Alcatel Shanghai Bell and Datang Mobile successfully deployed over 2,000 base stations in each city with the coverage of 1,782 square kilometers in Guangzhou and 1,153 square kilometers in Shanghai, respectively.

Since 2004, Alcatel Shanghai Bell and Datang Mobile have engaged in a strategic partnership to develop TD-SCDMA solutions in China and work together to secure commercial opportunities in China and abroad.

Alcatel-Lucent is strongly committed to strengthening its position in the mobile market.

About China Mobile
China Mobile Communications Corporation (China Mobile) is the world’s largest GSM operator and has currently about 200 million subscribers. China Mobile’s networks cover an area of over 98% of China mainland. China Mobile is listed in Hong Kong and New York Stock Exchanges, and is one of the Fortune 500 companies. China Mobile’s major business areas include mobile voice service, data service, IP telephony and multimedia services. Additional information can be found at external linkwww.chinamobile.com.

About Datang Mobile
Datang Mobile Communications Equipment Co., Ltd（Datang Mobile）registered and established in Beijing on February 8, 2002, is one of the core members of Datang Telecom Technology and Industry Group. Taking its excellent innovation and long-term accumulation, Datang Mobile is dedicated to the research and development of TD-SCDMA, a home grown international 3G standard. With the operation principle of ‘joint development, virtual manufacture and entrusted operation’, and on the basis of its self-own core intellectual property right and the whole series products including infrastructure and terminal, Datang Mobile is committed to providing the total solution for the customers in the area of public and private communication networks. Datang Mobile has been dedicated itself to becoming the leading company in the mobile communications field in China and all over the world through steady operation and fast growth by taking two resource advantages: technology innovation and industry capacity. Datang Mobile consolidated the best resources in research and development of mobile communications technology and the industrialization from China Academy of Telecommunications Technology (CATT). For more, please refer to Datang mobile website: http://www.datangmobile.cn/

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises and governments worldwide, providing solutions that deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 17.8 billion in 2007 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com